Petrochemical Industry of Japan
2014
Japan Petrochemical Industry Association INDEX
Material Flow ...... 1
Geographical Locations of Petrochemical Complexes ...... 2
Production Capacity ...... 3
Ethylene Production ...... 4
Production of Petrochemicals ...... 5
Export/ Import Balance as Ethylene Equivalent...... 6
Exports...... 7
Imports...... 8
Plastics Production ...... 9
Major Plastics Domestic Demand Breakdowns ...... 10
Production of Spun Yarns ...... 11
Production of Synthetic Rubbers ...... 12
The Members of the Association ...... 13～16
Material Flow (2013)
(Unit: 1,000 KL) (Unit:1,000 ton (%)) (Unit:1,000 ton) Low-density Polyethylene 1,721 (Including LLDPE, EVA)
Ethylene High-density Polyethylene 908 6,696 (29) Vinyl Chloride Monomer 2,294
Ethylene Oxide 909
Acetaldehyde 128 Propylene 5,647 (19) Styrene Monomer 2,592
(Includes propylene from Others n.a. refinery gas)
Naphtha Supply Polypropylene 2,248
Domestic 20,463 Acrylonitrile 518 Imports 24,942 C4 (Cracking) Fraction Propylene Oxide 509 2,878 (11) Total 45,405 Phenol 741
IPA 180 Pyrolysis LPG Gasoline Octanol 224 4,754 (20) Heavy Condensate Others n.a. Gas Oil
Others (21) Butadiene 963
Others n.a.
Benzene 4,694 (Including coal Toluene 1,683 tar aromatics) (Extraction) Aromatics Xylene 6,662
Others n.a.
1 Geographical Locations of Petrochemical Complexes
Mitsubishi Chemical Corp. JX Nippon Oil & Energy Corp. (Yokkaichi) (Kawasaki) Tosoh Corp. Tonen Chemical Corp. (Yokkaichi) (Kawasaki) Mitsui Chemicals, Inc. Maruzen Petrochemical Co., Ltd. (Osaka) ( Ichihara) Mitsubishi Chemical Corp. Mitsui Chemicals, Inc. (Mizushima) (Ichihara) Asahi Kasei Chemicals Corp. Sumitomo Chemical Co., Ltd. (Mizushima) (Anegasaki Sodegaura) Mitsui Chemicals, Inc. Idemitsu Kosan Co., Ltd. (Iwakuni Otake) (Chiba) Idemitsu Kosan Co., Ltd. Mitsubishi Chemical Corp. (Shunan) (Kashima) Showa Denko K. K. (Oita)
2 Production Capacity (as of December, 2013)
(in 1,000 metric tons) Product Capacity Note
Ethylene 7,210
Benzene 6,254
Toluene 2,347
Xylene 8,119
Para-xylene 3,959
Low-density Polyethylene 2,370 Including LLDPE, EVA
High-density Polyethylene 1,193
Polypropylene 2,972
Polystyrene 818 GP・HI
Polyvinyl Chloride 1,997
Ethylene Oxide 921
Acrylonitrile 724
SBR 634 Synthetic Rubbers BR 284
Styrene Monomer 2,667
Vinyl Chloride Monomer 2,574
Acetaldehyde 289
3 Ethylene Production
(in 1,000 metric tons) (in 1,000 metric tons) 8,000 Year Production Annual Growth (%)
’96 7,138 3 7,739 7,687 ’97 7,416 4 7,614 7,618 7,570 7,552
’98 7,076 ▲ 5 7,416 7,361 7,367 ’99 7,687 9
’00 7,614 ▲ 1 7,138 7,152 7,076 7,018 7,000 ’01 7,361 ▲ 3 6,913 6,882 ’02 7,152 ▲ 3 6,689 6,696 ’03 7,367 3
’04 7,570 3
’05 7,618 1
’06 7,522 ▲ 1 6,145
’07 7,739 3 6,000
’08 6,882 ▲ 11
’09 6,913 0
’10 7,018 2
’11 6,689 ▲ 5
’12 6,145 ▲ 8
‘13 6,696 9 5,000 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
4 Production of Petrochemicals
(in 1,000 metric tons) 2006 2007 2008 2009 2010 2011 2012 2013 Ethylene 7,522 7,739 6,882 6,913 7,018 6,690 6,146 6,696 Propylene 6,090 6,286 5,674 5,590 5,986 5,625 5,239 5,647 Butadiene 1,002 1,024 953 871 977 934 905 963 Basic Products Benzene 4,874 5,245 4,581 4,259 4,764 4,413 4,214 4,694 Toluene 1,633 1,637 1,437 1,415 1,393 1,340 1,391 1,683 Xylene 5,727 6,006 5,698 5.628 5,935 5,754 5,975 6,662 Low-density Polyethylene 1,876 1,878 1,818 1,605 1,704 1,664 1,477 1,539 EVA 221 219 218 215 244 235 200 184 High-density Polyethylene 1,069 1,135 1,052 986 1,015 935 928 908 Polypropylene 3,049 3,087 2,869 2,411 2,709 2,448 2,390 2,248 Plastics 926 932 908 829 690 698 654 589 633 169 171 168 143 114 124 125 112 111 Polystyrene 134 119 125 126 92 109 78 85 90 505 523 547 495 348 454 418 382 356 Polyvinyl Chloride 2,146 2,162 1,797 1,668 1,749 1,529 1,331 1,487 Ethylene Oxide 974 966 865 759 845 820 847 909 Ethylene Glycol 763 754 629 581 596 581 639 720 Synthetic Fiber Acrylonitrile 667 743 600 602 663 733 554 518 Feedstocks Caprolactam 467 467 432 342 422 397 376 339 Para-xylene 3,357 3,301 3,039 3,218 3,177 3,202 3,597 3,871 Pure Terephthalic Acid 1,432 1,254 1,015 893 1,131 885 715 757 Styrene-butadiene Rubber 710 727 706 527 670 665 652 656 Synthetic Rubbers Butadiene Rubber 289 294 290 254 294 275 290 303 Others 608 633 655 519 631 671 685 685 Styrene Monomer 3,295 3,533 2,847 2,996 2,939 2,739 2,392 2,592 Vinyl Chloride Monomer 3,228 3,142 2,763 2,996 2,935 2,504 1,879 2,294 Acetaldehyde 342 367 281 232 197 176 133 128 Acetic Acid 597 587 500 384 450 418 417 425 Others Octanol 280 270 259 267 286 259 249 224 Acetone 531 593 491 477 521 471 470 452 Phenol 860 961 772 786 853 796 787 741 Propylene Oxide 541 520 489 469 501 508 474 509 Polypropylene Glycol 344 343 308 240 284 265 258 252
5 Export/Import Balance as Ethylene Equivalent
(in 1,000 metric tons) (in 1,000 metric tons) 3,000 Export Import Net Export Import 2,940 Year Export Ratio Ratio 2,800 (A) (B) (A-B) (%) (%)
’01 2,051 417 1,634 27.9 7.3 2,600 Export 2,398 2,435 ’02 2,157 393 1,764 30.2 7.3 2,400 2,391 2,274 2,294 2,238 2,200 2,206 2,193 ’03 2,238 420 1,818 30.4 7.6 2,157 2,051 2,000 ’04 2,206 388 1,818 29.1 6.7 1,910 1,800 1,829 ’05 2,270 422 1,848 29.8 7.3
1,600 ’06 2,294 489 1,805 30.5 8.6
1,400 ’07 2,391 394 1,996 30.9 6.9 1,200 ’08 1,829 541 1,287 26.6 9.7 1,000 ‘09 2,940 407 2,533 42.5 9.3 Import 800 ‘10 2,435 535 1,901 34.7 10.4 709 704 672 600 541 535 ‘11 2,193 709 1,484 32.8 13.6 489 417 420 422 400 393 388 394 407 ‘12 1,910 704 1,205 31.1 14.3 200 ‘13 2,398 672 1,726 35.8 13.5
0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
6 Exports (in metric tons) 2006 2007 2008 2009 2010 2011 2012 2013 Low-density Polyethylene 211,912 210,980 188,581 302,885 241,688 175,753 151,859 161,284 High-density Polyethylene 164,890 176,713 139,077 275,157 237,597 179,830 197,653 156,403 Polypropylene 456,026 516,510 387,845 486,274 453,833 386,191 302,133 289,046 Polystyrene 82,146 99,961 84,054 63,740 55,918 52,147 51,893 53,218 ABS Resin 205,633 213,103 191,738 124,800 157,925 135,182 112,922 97,466 Polyvinyl Chloride 766,244 860,923 594,486 728,418 682,772 454,468 268,663 367,881 Styrene Monomer 1,378,024 1,628,083 1,132,468 1,593,313 1,398,480 1,275,641 1,003,246 1,165,267 Vinyl Chloride Monomer 1,028,251 902,431 898,844 1,270,632 1,110,526 925,823 471,064 742,137 Ethylene Glycol 167,698 167,471 44,420 175,586 75,177 147,304 216,880 274,749 Acetic Acid 41,656 56,204 45,973 35,423 28,235 32,093 23,230 29,978 Ethyl Acetate 30,751 45,034 9,637 14,560 1,600 879 2,076 25 Acrylonitrile 121,566 169,747 116,977 262,168 212,336 288,087 128,966 100,741 Acetone 84,473 116,547 74,316 124,030 90,771 52,672 75,404 48,053 Methylethyl Ketone 126,654 154,764 112,869 133,604 129,590 69,406 70,832 113,664 Octanol 88,719 64,210 71,718 118,621 121,280 95,975 98,752 89,154 Ethylene 299,249 282,868 196,496 587,897 459,333 542,981 596,637 876,393 Propylene 507,987 492,904 510,126 832,568 743,002 710,177 822,843 1,456,792 Benzene 247,460 218,245 411,619 224,687 325,400 240,059 428,804 766,543 Toluene 235,260 274,583 232,843 396,878 309,341 187,051 133,670 364,820 Mixed Xylene 232,295 373,647 293,581 343,937 373,529 312,288 210,984 346,412 Para-xylene 2,289,993 2,348,409 2,284,503 2,535,043 2,332,603 2,551,234 3,038,950 3,318,071 Phenol 96,112 197,287 153,260 255,978 216,820 188,791 194,711 190,329 Terephtalic Acid 509,707 317,386 171,359 296,478 331,583 156,260 108,700 119,087 Dimethyl Terephthalate 3,217 3,121 2,091 7,936 10,721 15,255 7,848 15,146 Phthalic Anhydride 30,224 24,527 28,742 39,744 41,584 34,920 47,604 54,267 Caprolactam 238,195 233,553 195,213 192,162 239,295 220,657 211,037 177,654 Synthetic Rubbers 545,521 601,467 574,357 625,474 753,439 699,712 749,019 843,009
7 Imports
(in metric tons) 2006 2007 2008 2009 2010 2011 2012 2013 Low-density Polyethylene 200,531 197,007 261,037 177,237 245,565 339,338 330,130 315,391 High-density Polyethylene 16,104 10,834 27,467 30,423 47,825 97,909 129,180 121,823 Polypropylene 99,863 110,342 194,211 115,225 145,892 197,213 308,229 250,742 Polystyrene 10,034 2,740 7,193 12,938 20,770 33,686 52,524 26,339 Polyvinyl Chloride 10,555 7,359 8,872 10,760 5,659 30,707 20,225 7,540 Styrene Monomer 11,865 9,768 2,995 2,815 54 219 0 30 Ethylene Dichloride 318,409 221,010 43,461 232,873 215,895 140,182 127,299 258,019 Ethylene Glycol 24,513 18,077 19,809 2,083 9,277 47,139 26,080 5,410 Acrylonitrile 40,891 35,893 37,428 4,762 6,754 6,753 4,028 8,464 Propylene Glycol 15,794 16,927 19,690 21,442 18,517 14,806 13,129 17,135 Acetone 46,802 41,418 31,953 8,253 6,647 22,437 9,628 18,377 Butanol 3,562 2,841 3,374 4,153 1,030 10,959 4,684 2,468 Benzene 339,383 269,427 162,254 271,461 90,029 133,501 149,240 173,036 Toluene 16,626 93,859 76,941 105,084 32,422 67,873 58,599 25,577 Mixed Xylene* 41,566 7,927 0 0 0 40,543 56,036 0 Para-xylene ----9,92514,84400 Phenol 118,430 89,498 101,955 25,960 42,282 32,444 16,933 13,655 Ethylene 103,991 55,489 142,445 41,756 60,344 41,942 26,872 3,204 Propylene 9,209 6,917 85,462 21,067 21,508 5,119 43,441 16 Butadiene 35,431 26,693 55,263 9,432 30,212 22,667 65,482 37,700 Synthetic Rubbers 180,497 194,081 211,256 138,369 172,289 200,925 180,548 157,904
* Including Crude Xylene
8 Plastics Production
(in 1,000 metric tons) 2006 2007 2008 2009 2010 2011 2012 2013 Low-density Polyethylene 1,876 1,878 1,818 1,605 1,704 1,664 1,477 1,539 EVA 221 219 218 215 244 235 200 184 High-density Polyethylene 1,069 1,135 1,052 986 1,015 935 928 908 Polypropylene 3,049 3,087 2,869 2,411 2,709 2,448 2,390 2,248 926 908 829 829 690 698 654 589 633 169 168 143 143 114 124 125 112 111 Polystyrene 134 125 126 126 92 109 78 85 90 505 547 495 495 348 454 418 382 356 Polyvinyl Chloride 2,146 2,162 1,797 1,668 1,749 1,529 1,331 1,487 Polyvinyl Alcohol 213 230 215 192 241 233 207 233 Vinyliden Chloride Resin 68 75 74 68 n.a. n.a n.a n.a Methacrylate Resin 269 247 219 166 216 203 172 163 Polyamide Resin 273 274 277 189 230 234 223 225 Others 1,644 1,606 1,490 1,072 1,517 1,334 1,230 1,246 Thermoplastic Resin Total 12,573 12,661 11,696 9,884 11,010 10,089 9,326 9,423 Phenol Resin 284 295 288 227 284 276 275 287 Urea Resin 116 110 94 73 68 71 70 70 Melamine Resin 141 141 111 90 91 77 75 81 Unsaturated Polyester Resin 168 164 149 117 120 115 114 113 Urethane Foam 249 235 222 163 180 173 193 193 Others 318 325 296 214 262 231 216 202 Thermosetting Resin Total 1,276 1,269 1,159 884 1,005 943 943 946 Others 201 194 186 147 228 179 272 210 Grand Total 14,050 14,124 12,967 10,915 12,242 11,212 10,540 10,579
9 Major Plastics Domestic Demand Breakdowns (2013)
(in 1,000 metric tons) L. D. Polyethylene H. D. Polyethylene Polypropylene Market Volume Percentage Volume Percentage Volume Percentage
Film 641 49.0 196 25.6 466 21.1
Laminating 242 18.5
Oriented Tape (Flat Yarn) 21 2.8 21 0.9
Injection Molding 76 5.8 94 12.3 1,193 54.1
Blow Molding 41 3.1 170 22.2 14 0.6
Fiber 37 4.8 102 4.6
Pipe 19 1.4 73 9.6
Wire and Cable 65 5.0
Others 225 17.2 174 22.7 410 18.4
Domestic Total 1,309 100.0 765 100.0 2,206 100.0
Polystyrene (GP・HI) Polyvinyle Chloride Market Market Volume Percentage Volume Percentage Electric and Industrial 91 14.4 Rigid PVC 599 56.0 Equipment Plasticized PVC 252 23.6 Packaging 294 46.7 Wire and Others 219 20.5 Miscellaneous, Others 73 11.7 Domestic Total 1,071 100.0 FS 171 27.2
Domestic Total 629 100.0
10 Production of Spun Yarns
(in metric tons)
2006 2007 2008 2009 2010 2011 2012 2013
Nylon Yarn 1,073 967 765 512 534 n.a. n.a. n.a.
Vinylon Yarn 6,155 6,369 5,453 3,918 4,459 n.a. n.a. n.a.
Acrylic Yarn 16,324 16,334 14,088 10,297 10,847 10,643 9,538 7,995
Polyester Yarn 36,293 33,249 31,382 19,372 18,289 18,161 17,498 15,515
Others 1,274 1,196 1,011 800 795 6,604 5,721 5,842
Synthetic Fiber Yarn Total 61,119 58,115 52,699 34,899 34,924 35,408 32,757 29,352
Natural Yarn Total 106,782 98,896 88,849 62,376 62,112 61,189 55,267 53,453
Grand Total 167,901 157,011 141,548 97,275 97,036 96,597 88,024 82,805
11 Production of Synthetic Rubbers
(in 1,000 metric tons)
2006 2007 2008 2009 2010 2011 2012 2013
Styrene-butadiene Rubber 710 727 706 527 670 665 652 656
Butadiene Rubber 289 294 290 254 294 275 290 303
Nitrile-butadiene Rubber 99 109 109 86 115 109 107 115
Chloroprene Rubber 110 112 115 89 130 135 122 126
Ethylene Propylene Rubber 191 187 224 149 193 197 218 202
Others 208 225 207 195 193 230 238 242
Total 1,607 1,655 1,651 1,300 1,595 1,611 1,627 1,644
12 The Members of the Association (As of May, 2014)
Company Address Phone URL
Sumitomo Chemical Co., Ltd. Tokyo Sumitomo Twin Bldg (East)., 2-27-1, Shinkawa, Chuo-ku, Tokyo 104-8260, Japan +81-3-5543-5500http://www.sumitomo- chem.co.jp/english/
JX Nippon Oil & Energy Corp. 6-3, Otemachi 2-chome, Chiyoda-ku, Tokyo 100-8162, Japan +81-3-6275-5057http://www.noe.jx-grou p.co.jp/english/
Maruzen Petrochemical Co., Ltd. Sanshin Hatchobori Bldg., 2-25-10, Hatchobori, Chuo-ku, Tokyo 104-8502, Japan +81-3-3552-9361http://www.chemiway. co.jp/en/index.html
Mitsui Chemicals, Inc. Shiodome City Center, 1-5-2, Higashi-shimbashi, Minato-ku, Tokyo 105-7117, Japan +81-3-6253-2100http://www.mitsuichem .com/index.htm
JSR Corp. Shiodome Sumitomo Bldg., 1-9-2, Higashi-Shinbashi, Minato-ku, Tokyo 105-8640, Japan +81-3-6218-3500http://www.jsr.co.jp/jsr _e/
Nippon Shokubai Co., Ltd. Kogin Bldg., 4-1-1, Koraibashi, Chuo-ku, Osaka 541-0043, Japan +81-6-6223-9111http://www.shokubai. Hibiya Dai Bldg., 1-2-2, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan +81-3-3506-7475co.jp/en/
ZEON Corp. Shin Marunouchi Center Bldg., 1-6-2, Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan +81-3-3216-1772http://www.zeon.co.jp/i ndex_e.html
Mitsubishi Chemical Corp. 1-1, Marunouchi, 1-chome, Chiyoda-ku, Tokyo 100-8251, Japan +81-3-6748-7300http://www.m-kagaku.c o.jp/index_en.htm
Tonen Chemical Corp. W Bldg., 1-8-15, Konan, Minato-ku, Tokyo 108-8005, Japan +81-3-5495-6000http://www.tonengeneral .co.jp/apps/tonengeneral /english/index.html
NUC Corp. W Building, 1-8-15 Kohnan, Minato-ku, Tokyo 108-0075 +81-44-299-5711http://www.unicar.jp/
JNC Corp. Shin Otemachi Bldg., 9F, 2-2-1 Otemachi, Chiyoda-ku, Tokyo 100-8105, Japan +81-3-3243-6760http://www.jnc-corp.co .jp/english/index.html
13 Company Address Phone URL
Showa Denko K.K. 1-13-9, Shiba Daimon, Minato-ku, Tokyo 105-8518, Japan +81-3-5470-3235http://www.sdk.co.jp/e nglish/
Mitsubishi Rayon Co., Ltd. 1-1, Marunouchi, 1-chome, Chiyoda-ku, Tokyo 100-8253, Japan +81-3-6748-7500http://www.mrc.co.jp/e nglish/index.html
Du Pont-Mitsui Polychemicals Co., Shiodome City Center, 1-5-2, Higashi-shimbashi, Minato-ku, Tokyo 105-7117, Japan +81-3-6253-4000http://www.mdp.jp Ltd.
Idemitsu Kosan Co., Ltd. 3-1-1, Marunouchi, Chiyoda-ku, Tokyo 100-8321, Japan +81-3-3213-3115http://www.idemitsu.co m/
Asahi Kasei Chemicals Corp. 1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo 101-8101, Japan +81-3-3296-3200http://www.asahi-kasei. co.jp/asahi/en/index.ht ml
Daicel Chemical Industries, Ltd. Mainichi Intecio., 3-4-5, Umeda, Kita-ku, Osaka 530-0001, Japan +81-6-6342-6111http://www.daicel.com/ en/ JR Shinagawa East Bldg., 2-18-1, Konan, Minato-ku, Tokyo 108-8230, Japan +81-3-6711-8111
Denki Kagaku Kogyo K.K. Nihonbashi Mitsui Tower, 2-1-1, Nihonbashi-Muromachi, Chuo-ku, Tokyo 103-8338, Japan +81-3-5290-5055http://www.denka.co.jp /eng/top.htm
Ube Industries Ltd. Seavans North Bldg., 1-2-1, Shibaura, Minato-ku, Tokyo 105-8449, Japan +81-3-5419-6110http://www.ube-ind.co. +81-836-31-2111jp/english/index.htm 1978-96, Kogushi, Ube-shi, Yamaguchi 755-8633, Japan
Tosoh Corp. Shiba-koen First Bldg., 3-8-2, Shiba, Minato-ku, Tokyo 105-8623, Japan +81-3-5427-5118http://www.tosoh.com/
Nippon Steel & Sumikin Chemical Akihabara UDX, 13F, 4-14-1, Sotokanda, Chiyoda-ku, Tokyo 101-0021, Japan +81-3-5207-7600http://www.nscc.co.jp/e Co., Ltd nglish/index.html
14 Company Address Phone URL
Tokuyama Corp. Kasumigaseki Common Gate West Tower, 2-1,Kasumigaseki 3-chome, +81-3-6205-4800 http://www.tokuyama.c Chiyoda-ku, Tokyo 100-8983, Japan o.jp/eng/index.html
1-1, Mikage-cho, Shunan city, Yamaguchi 745-8648, Japan +81-834-34-2000
Kuraray Co., Ltd. Ote Center Bldg., 1-1-3, Otemachi, Chiyoda-ku, Tokyo 100-8115, Japan +81-3-6701-1000http://www.kuraray.co. jp/en/ Umeda Hankyu Building Office Tower, 8-1, Kakudacho, Kita-ku, +81-6-7635-1000 Osaka 530-8611, Japan
Mitsubishi Gas Chemical Co., Inc. Mitsubishi Bldg., 2-5-2 Marunouchi, Chiyoda-ku, Tokyo 100-8324, Japan +81-3-3283-5000http://www.mgc.co.jp/e ng/index.html
KH Neochem Co., Ltd NBF Nihonbashi Muromachi Center Bldg., 3-2-15, Nihonbashi-Muromachi, Chuo-ku, Tokyo +81-3-3501-3550http://www. 103-0022, Japan khneochem.co.jp/en/
SunAllomer Ltd. Tennoz Central Tower 27F, 2-2-24, Higashi-shinagawa, Shinagawa-ku, Tokyo +81-3-5781-5610http://www.sunallomer. 140-0002, Japan co.jp/eng/index.php
Japan Polyethylene Corp. Palace Bldg. 1-1-1, Marunouchi, Chiyoda-ku, Tokyo 100-8251, Japan +81-3-6748-7189http://www.pochem.co. jp/english/jpe/index.ht ml
Japan Polypropylene Corp. Palace Bldg. 1-1-1, Marunouchi, Chiyoda-ku, Tokyo 100-8251, Japan +81-3-6748-7190http://www.pochem.co. jp/english/jpp/index.ht ml
15 Company Address Phone URL
Prime Polymer Co., Ltd. Shiodome City Center, 1-5-2, Higashi-Shimbashi, Minato-ku, Tokyo 105-7117, Japan +81-3-6253-4500http://www.primepoly mer.co.jp/english/index .html
Taiyo Oil Co., Ltd. Hibiya kokusai Bldg., 15F, 2-2-3, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan +81-3-3502-1601http://www.taiyooil.net /english/
16
Japan Petrochemical Industry Association (JPCA)
SUMITOMO FUDOSAN ROKKO BLDG., 8F, 1-4-1, SHINKAWA, CHUO-KU, TOKYO 104-0033 JAPAN
TEL:+81-3-3297-2011 FAX:+81-3-3297-2017 URL:http://www.jpca.or.jp
Report on the Japanese Petrochemical Industry
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The Japanese Petrochemical Industry in 2013
1. Status and Outlook of the Japanese Economy
1) According to government statistics, the latest estimates show that Japanese GDP growth (real GDP growth, seasonally adjusted) improved from 1.4% in 2012 to 1.5% in 2013. Especially from Q2, the Japanese economy gradually revived through 2013.
2) GDP growth in Q1 was minus 0.1% year-on-year due to a decrease in personal consumption and a decline in exports reflecting the slowdown of the Chinese economy which started from the second half of 2012. However, Q2 shows 1.3% growth, and Q3 and Q4 grew by 2.4% and 2.5% year-on-year, respectively. Reasons were the correction of the appreciation of the Japanese yen which improved export conditions, and the government’s monetary policy which stimulated the domestic economy.
3) Supported by a slight recovery of the US and Chinese economies and continuation of the government’s monetary and fiscal policies, the Japanese economy is expected to maintain a reasonable condition in 2014. We expect that continuation of the government’s economic growth strategies will expand the domestic economy and bring a recovery from the slowdown of domestic personal consumption due to the consumption tax increase in April.
Japan Economic Indexes in 2013 (changes from the previous year) Unit 2012 2013 Q1 Q2 Q3 Q4 GDP growth 1) 1.4% 1.5% -0.1% 1.3% 2.4% 2.5% Industrial 2010=100 97.6 97.0 94.7 96.1 97.7 99.5 production index 2) -0.6% -6.5% -3.0% 1.9% 5.7% Car production 3) Thousand 9,943 9,630 2,382 2,279 2,465 2,504 18.4% -3.1% -14.1% -7.9% 1.3% 10.7% Housing starts 4) Thousand 883 980 210 241 258 271 5.8% 11.0% 5.1% 11.8% 13.5% 12.9% Exchange rate 5) ¥/USD 80.8 97.6 92.4 98.8 99.0 100.5 0% 0% 15.1% 21.6% 24.2% 22.2% Crude oil processing 2) Thousand KL 198,138 200,637 52,834 46,910 50,777 50,116 0% 1% -0.9% - 0.1% 3.7% 2.6% 1) Cabinet Office - Government of Japan, real GDP growth, seasonally adjusted 2) Ministry of Economy, Trade and Industry, seasonally adjusted index 3) Japan Automobile Manufacturers Association, Inc. 4) Ministry of Land, Infrastructure, Transport and Tourism 5) Sumitomo Mitsui Banking Corporation
2. General Situation of the Japanese Petrochemical Industry
1) Domestic ethylene production in 2013 amounted to 6,696 kt, increasing by approximately 9% from that of the previous year which was 6,145 kt. The Japanese petrochemical industry recovered compared to 2012, due to a slight recovery in ethylene demand and increased exports of ethylene and its derivatives as a result of the recovery of the Chinese economy and the depreciation of the Japanese yen. Operating
- 2 -
rates of naphtha crackers increased, as higher domestic demand was covered by domestic production and import quantity declined. Benefited by good export conditions, export quantity of olefins and their derivatives also increased notably. Japanese production of olefin derivatives other than HDPE and C3 derivatives increased.
Japan Ethylene Indexes in 2013 (changes from the previous year) unit 2012 2013 Q1 Q2 Q3 Q4 Production Thousand 6,145 6,696 1,659 1,623 1,614 1,800 MT -8.1% 9.0% 7.5% 14.5% 2.3％ 12.0% Demand Thousand 4,941 4,967 1,233 1,222 1,167 1,344 (Ethylene equivalent) MT -5.1% 0.5% 2.5% -0.3% -4.8% 4.6% Export Thousand 1,908 2,401 589 577 617 618 (Ethylene equivalent) MT -13.0% 25.8 % 19.0% 45.2 % 19.2 % 24.0% Ministry of Economy, Trade and Industry
Japan Petrochemical Production in 2013 (thousand MT) Total of 5 LDPE HDPE PP PS SM PVC main EG AN resins 2011 1,664 935 2,448 654 2,739 1,529 7,230 581 733 2012 1,477 928 2,390 589 2,392 1,331 6,715 639 554 2013 1,539 908 2,248 633 2,592 1,487 6,815 720 518 Ministry of Economy, Trade and Industry
2) Due to the ongoing gradual growth of the US and the Chinese economies, and the depreciation of the Japanese yen, we expect that Japanese petrochemical demand in 2014 will also show continuous gradual growth. It will be a turnaround season in NEA in 2014. Firm olefin demand and reduced output due to turnarounds will enable naphtha crackers to maintain high operating rates while olefin prices stay at a comfortable level.
3. Challenges facing the Japanese petrochemical industry
Construction of new large-scale petrochemical facilities in the Middle East and China and increased reliance on shale gas in North America have forced the Japanese petrochemical industry to strengthen its competitiveness in the global market. Thus, the Japanese petrochemical industry needs to implement rationalization as much as possible under the given conditions, and seek growth markets, especially in Asia, as follows.
1) Restructuring of the Japanese petrochemical industry One important task is the optimization of domestic crackers. A number of policies and plans to shut down naphtha crackers have been announced. Mitsubishi Chemical announced that its Kashima No. 1 naphtha cracker will be closed in 2014. Sumitomo Chemical will shut its naphtha cracker in Chiba in autumn 2015, and Mitsui Chemicals will withdraw from the Keiyo Ethylene joint venture in Chiba. In Mizushima, the naphtha crackers of Asahi Kasei Chemicals and Mitsubishi Chemical are scheduled for unification on the Mitsubishi Chemical facility in April 2016.
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Also, it is very important to promote the operational integration of refineries and petrochemical complexes, for instance by interchange of feedstock, striking the best mix of diversified raw materials, co-operation on utilities or logistics, and increasing synergy for both sides. In Japan, an entity called “Research Association of Refinery Integration for Group Co-Operation” (RING) was established in 2000 to help the optimization of complex operation and to promote closer co-operation between the refining and petrochemical sectors, and a number of projects have been advanced.
2) Producing value-added products The Japanese petrochemical industry lacks cost competitiveness because each complex is relatively small in scale and dependent on imported feedstock. On the other hand, it is a good provider of material solutions, and it has been successful in producing high performance products with customers. The key to producing value-added products is partnership with downstream industries such as automotive, electronics, eco-products, and healthcare. Petrochemical companies and downstream industries need to integrate more technologies, markets, and products in order to generate new markets.
3) Promoting “environmentally friendly” technologies Renewable energy from natural resources such as sunlight, wind, hydro, waves, geothermal, and biomass is sustainable and safe. Contrasted with fossil energy resources such as petroleum, coal, and natural gas, which will gradually be exhausted, renewable energy is naturally replenished and we can use it far into the distant future. Additionally, the energy is called environmentally friendly because it does not contribute to CO2 emissions and climate change. Thus, the market for renewable energy resources is expected to expand.
The petrochemical industry is also expected to be a major source of profits because many petrochemical materials are applied for renewable energy technologies like solar cells and lithium-ion batteries. However, new technologies have not been developed as quickly as had been hoped. Although a number of R&D programs are in progress, many companies, government institutes, and academic institutions need to co-operate in the form of consortiums in order to speed up invention.
4) Maintaining safe and stable operations It is of the upmost importance for the petrochemical industry to maintain safe and stable operations. Japanese petrochemical companies have accumulated knowledge and experience about safe and stable operations over a long period, and developed techniques to achieve safe operations. Petrochemical companies must continue to further improve both hardware and human aspects of safe operation.
4. Realizing new opportunities through petrochemistry 1) Shale gas is the alternative feedstock for naphtha. Petrochemical production from US shale gas is highly cost competitive, and consequently production from naphtha is poised to decline in the near future.
2) Olefins derived from shale gas and oil, coal-to-olefins, and propane dehydrogenation will accelerate change in the olefins market and petrochemical feedstocks. As mentioned above, three naphtha crackers in Japan will shut down permanently within two years. Operators of the remaining Japanese crackers should work to achieve further cost reductions, develop high-value derivatives, develop new technology to convert surplus fractions to propylene, butadiene, etc., and integrate with nearby refineries to enhance their competitiveness.
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Table-1 Changes in Production, Exports & Imports of Main Products (Unit: 1,000MT) Production Import Export 2011 2012 2013 2011 2012 2013 2011 2012 2013 Ethylene 6,689 6,145 6,696 42 27 3 543 597 876 LDPE 1,664 1,477 1,539 339 330 315 176 152 161 HDPE 935 928 908 98 129 122 180 198 156 PP 2,448 2,390 2,248 197 308 251 386 302 289 PS(GP.HI) 654 589 633 34 53 26 52 52 53 PVC 1,529 1,331 1,487 31 20 8 454 269 368 Total Main5 7,230 6,715 6,815 699 840 722 1,248 973 1,027 Resins EG 581 639 720 47 26 5 147 217 275 SM 2,739 2,392 2,592 0 0 0 1,276 1,003 1,116 AN 733 554 518 7 4 8 288 129 101 Source: For Production,METI; For Export and Import, MOF
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Table-2 Production Capacity of Major Petrochemicals by Producers (End of 2013) Ethylene (Unit: 1,000MT/Year) Turnaround Year Full Operation Year Idemitsu Kosan Co., Ltd. 997 1,101 Keiyo Ethylene Co., Ltd. 690 768 Maruzen Petrochemical Co., Ltd. 480 525 Mitsubishi Chemical Corp. 1,209 1,374 Mitsui Chemicals, Inc. 553 612 JX Nippon Oil ＆ Energy Corp. 404 443 Osaka Petrochemical Industries, Ltd. 455 500 Asahi Kasei Chemicals Corp. 443 504 Showa Denko K.K. 615 691 Sumitomo Chemical Co., Ltd. 380 415 Tonen Chemical Corp. 491 540 Tosoh Corp. 493 527 Total 7,210 8,000
Polyolefin
LDPE HDPE PP
(Including L-LDPE) Asahi Kasei Chemicals Corp. 120 163 ー JNC Corp. ― 63 ― Du Pont-Mitsui Polychemicals Co., Ltd. 170 ― ― Evolue Japan Co., Ltd. 300 ― ― Japan Polyethylene Corp. 711 475 ― Japan Polypropylene Corp. ― ― 1,075 Maruzen Petrochemical Co., Ltd. ― 111 ― Mitsui Chemicals, Inc. ― 5 ― Nippon Unicar Co., Ltd. 252 48 ― Prime Polymer Co., Ltd. 156 203 973 Sumitomo Chemical Co., Ltd. 305 ― 316 SunAllomer Ltd. ― ― 408 Tokuyama Polypro Ltd., Co. ― ― 200 Tosoh Corp. 183 125 ― Ube-Maruzen Polyethylene Co., Ltd. 173 ― ― Ube Polypropylene Co., Ltd. ― ― ― Ukishima Polypro Co., Ltd. ― ― ― Total 2,370 1,193 2,972
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Polystyrene, Styrene Monomer
Polystyrene Styrene Monomer Asahi Kasei Chemicals Corp. ― 678 Chiba Styrene Monomer Limited Company ― ― DIC Corp. 173 ― Denki Kagaku Kogyo K.K. ― 270 Idemitsu Kosan Co., Ltd. ― 550 Japan Polystyrene Inc. ― ― Mitsubishi Chemical Corp. ― ― Nihon Oxirane Co., Ltd. ― 412 Nippon Steel Chemical Co., Ltd. ― 422 PS Japan Corp. 315 ― Taiyo Petrochemical Co., Ltd. ― 335 Toyo Styrene Co., Ltd. 330 ― Total 818 2,667
Vinyl Chloride Monomer Polyvinyl Chloride Kaneka Corp. 540 Kaneka Corp. 369 Kashima Vinyl Chloride Monomer Co., Ltd. 600 Shin Dai-Ichi Vinyl Corp. 255 Keiyo Monomer Co., Ltd. 200 Shin-Etsu Chemical Co., Ltd. 550 Tokuyama Corp. 330 Taiyo Vinyl Corp. 558 Tosoh Corp. 904 Tokuyama Sekisui Co., Ltd. 117 V-Tech Corp. ― Tosoh Corp. 28 Total 2,574 V-Tech Corp. 120 Total 1,997 Ethylene Oxide Mitsubishi Chemical Corp. 300 Mitsui Chemicals, Inc. 100 Acetaldhyde Nippon Shokubai Co., Ltd. 324 Sumitomo Chemical Co., Ltd. 69 Maruzen Petrochemical Co., Ltd. 197 KH Neochem Co., Ltd. 60 Total 921 Showa Denko K.K. 160 Total 289 Acrylonitrile Asahi Kasei Chemicals Corp. 419 Mitsubishi Rayon Co., Ltd. 196 Showa Denko K.K. 57 Sumitomo Chemical Co., Ltd. 52 Total 724
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Synthetic Rubber
SBR BR IR Asahi Kasei Chemicals Corp. 130 35 － Japan Elastomer Co., Ltd. 44 16 － JSR Corp. 296 65 40 Mitsubishi Chemical Corp. 42 － － Ube Industries, Ltd. － 110 －
ZEON Corp. 122 58 38 Total 634 284 78 Source: METI
Table-3 World Supply and Demand for Ethylene Derivatives by Area
1. Ethylene Derivatives Demand (As Ethylene Equivalent) （Unit: Million Ton,％） North, Central World Asia Western and South Middle East Europe America Demand 2011 122.7 54.3 22.2 30.6 8.4 2017 153.1 69.9 23.8 36.5 12.2 Increment 11-17 30.4 15.6 1.7 6.0 3.9 Annual Growth Rate 11-17 3.8 4.3 1.2 3.0 6.5
2. Ethylene Derivatives Capacity (As Ethylene Equivalent) （Unit: Million Ton,％） North, Central World Asia Western and South Middle East Europe America Capacity 2011 149.6 52.9 27.0 39.3 24.9 2017 182.1 67.4 26.3 50.3 30.1 Increment 11-17 32.5 14.5 -0.7 11.0 5.2 Annual Growth Rate 11-17 3.3 4.1 -0.4 4.2 3.2 Source: METI (2013.4)
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Table-4 Major Development Related to Petrochemical Industry Restructuring
Ⅰ Merger 1 Merger of Nippon Petrochemical and Nippon Petroleum refining into continuing 08.4 firm known as Nippon Petroleum Refining. 2 Mitsubishi Rayon Co., Ltd. finished acquisition of Lucite International. 09.5 3 Nippon Oil Corp. and Nippon Mining Holding merged as JX Holding. 10.4 4 Idemitsu Kosan Co., Ltd. and Mitsui Chemicals, Inc. established a Limited Liability 10.4 Partnership (LLP) called Chiba Chemicals Manufacturing LLP 5 Asahi Kasei Chemicals Corp. and Mitsubishi Chemical Corp. established a Limited 11.4 Liability Partnership (LLP) called Nishi Nippon Ethylene LLP Ⅱ Business 1 Polyolefins Sector Integration Integration ① Sumitomo Mitsui Polyolefin Co., Ltd. was established by Mitsui Chemicals, Inc. 02.4 and Sumitomo Chemical Co., Ltd. with fifty fifty joint venture. ② Sumitomo Mitsui Polyolefin Co., Ltd. was dissolved. 03.10 ③ Mitsui Chemicals, Inc. and Idemitsu Kosan Co., Ltd. integrated the polyolefine 05.4 business and established Prime Polymer Co., Ltd. The capital ratio was 65 %, 35%. 2 PE Sector Integration ① Japan Polyethylene Corp. was established by Japan Polychem Corp., Japan 03.9 Polyolefins Co., Ltd.and Mitsubishi Shoji Plastics Corp. with the stake 50%, 42%, 8% each. ② Ube Industries Ltd. and Maruzen Petrochemical Co., Ltd. established Ube-Maruzen 04.10 Polyethylene Co., Ltd., LDPE integrated company by fifty fifty equity. ③ Maruzen Petrochemical Co., Ltd. Absorbed Maruzen Polymer Co., Ltd. 05.4 3 PP sector Integration ① Tokuyama Polypro Ltd. Co. was established by Idemitsu Petrochemical Co., Ltd. 01.4 and Tokuyama Corp. with fifty fifty joint venture. ② Mitsui Chemicals, Inc. absorbed Grand Polymer Co., Ltd. 02.4 ③ Japan Polychem Corp. and Chisso Corp. integrated their polypropylene business and 03.10 established Japan Polypropylene Corp. with the stake 65%, 35% each. ④ SunAllomer Ltd. Absorbed Ukishima Polypro Co., Ltd. 07.4 4 PVC Sector Integration ① V-Tech Corp.was established by Mitsubishi Chemical Corp. and Toagosei Co., Ltd. 00.4 with the stake 60％,40％ each. The capital ratio was changed to 85.1%, 14.9% (04.03) ② Mitsubishi Chemical Corp. Toagosei Co., Ltd. announced to dissolve V-Tech by 11.2 September 2011. ③ Asahi Glass Co.,Ltd., ADEKA Co. and Kaneka Co. announced t withdraw their 11.12 capital investment from both Kashima Denkai and Kashima PVC Monomer. 5 PS Sector Integration ① PS Japan Corp. was established by Asahi Kasei Corp., Mitsubishi Chemical Corp. 03.4 and Idemitsu Petrochemical Co., Ltd. with the stake 45%, 27.5%, 27.5% each. A&M Styrene Co., Ltd. was disbanded. ② Mitsui Chemicals, Inc. and Sumitomo Chemical Co., Ltd. announced disband of 09.4 Japan polystyrene Co.,Ltd.. ③ PS Japan Corp. announced to stop the operation of Yokaichi plant by March 2011. 09.2
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④ Mitsubishi Chemical Corp. announced to withdraw their capital investment from 09.4 PS Japan. 6 ABS Sector Integration ① UMG ABS Ltd. was established by Ube Industries Ltd., Mitsubishi Rayon Co., Ltd. 02.4 and General Electric Co. with the stake 42.7%, 42.7%, 14.6% each ② JSR Corp. and Mitsubishi Chemical Corp. decided to disband Techno Polymer 08.11 Co.,Ltd.. ③ Share ratio of UMG ABS Ltd. was changed into Ube Industries Ltd., Mitsubishi 12.11 Rayon Co., Ltd. with the stake 50%, 50% each due to General Electric Co’s withdrawal of their capital investment. Ⅲ Business 1 Chisso Corp.transferred commercial rights on polyvinyl chloride business to Kaneka 00.4 Transfer Corp. 2 Tokuyama Corp. will transfer its polypropyrene business to Idemitsu Petrochemical 01.7 Co., Ltd. 3 Kureha Chemical Industry Co., Ltd. will transfer its polyvinyl chloride business to 03.1 Taiyo Vinyl Corp. 4 Mitsui Chemicals, Inc. transfered SM business to Taiyo Petrochemical Co., Ltd. 04.1 5 Tosoh Corp. withdraws from Nippon Styrene Monomer (NSM, Nippon Steel 08.3 Chemical Group 65%, Tosoh 35%), which becomes a 100% subsidiary of the Nippon Steel Chemical Group. Source: Japan Petrochemical Industry Association
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